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Wall Street Tax Act of 2023
12/7/2023, 5:06 PM
Summary of Bill S 2491
The proposed tax rates vary depending on the type of transaction, with higher rates for riskier and more speculative trades. The revenue generated from this tax would be used to fund various government programs and initiatives, such as infrastructure projects, education, and healthcare.
Supporters of the Wall Street Tax Act argue that it would help to curb excessive speculation in the financial markets and generate much-needed revenue for important social programs. However, opponents of the bill argue that it could have negative effects on market liquidity and investment, potentially harming economic growth. Overall, the Wall Street Tax Act of 2023 is a controversial piece of legislation that aims to address income inequality and raise revenue through taxing financial transactions. Its fate in Congress remains uncertain as lawmakers continue to debate its potential impact on the economy and financial markets.
Congressional Summary of S 2491
Wall Street Tax Act of 2023
This bill imposes a 0.1% excise tax on certain purchases of stocks, bonds, and derivatives.
The tax applies to the purchase of a security if (1) such purchase occurs on, or is subject to the rules of, a qualified board or exchange located in the United States; or (2) the purchaser or seller is a U.S. person.
The tax applies to transactions with respect to a derivative if (1) the derivative is traded on, or is subject to the rules of, a qualified board or exchange located in the United States; or (2) any party with rights under the derivative is a U.S. person.
The bill exempts from such tax (1) initial issues of securities; and (2) any note, bond, debenture, or other evidence of indebtedness which is traded on or is subject to the rules of, a qualified board or exchange located in the United States, and has a fixed maturity of not more than 100 days.
The tax applies to transactions by a controlled foreign corporation and must be paid by its U.S. shareholders.
